Suburban land prices continue to decline
With more than 5 billion VND in hand, Mr. Ngo Thanh Nam (Cau Giay District, Hanoi) is overwhelmed because there are too many choices for land. Last year, he planned to buy land in Dong Anh, Me Linh, Quoc Oai, Dan Phuong, Hoai Duc districts... for investment, but with 5 billion VND, he did not have many choices.
Land prices in some districts of Hanoi have decreased, making transactions easier in 2022
"I looked at a plot of land of more than 100 square meters in Dan Phuong District, but in 2022 the owner quoted a price of nearly 7 billion VND, this year it is only 5.5 billion VND," said Mr. Nam, adding that he was hesitant because in Me Linh District, land prices have also decreased by about 30% compared to last year, making it very easy to buy.
In some districts on the outskirts of Hanoi such as Dan Phuong, Me Linh, Soc Son, Quoc Oai... for a long time, land prices were very "hot" but now, the "star" position of this type of real estate has been lost.
Ms. Tran Thu Hue, a real estate broker in Tram Troi Town, Hoai Duc District (Hanoi) said that currently many landowners are advertising to cut losses but the advertised prices are still high. For example, land in the center of Hoai Duc District is still advertised at around 45 - 60 million VND/ m2 , although it has decreased by about 30% compared to a year ago but is still "difficult to buy".
The psychology of waiting to "buy the bottom" is one of the reasons why suburban land prices have decreased.
The reason for this situation is the sluggishness of real estate in general, land in particular, as well as the psychology of waiting to "buy the bottom" of real estate investors. Instead of being the main driving force for land in the suburbs of Hanoi as before, land for sale is tending to decrease in price and become easier to buy.
Thanh Nien 's survey in some suburban districts shows that, compared to the peak period, land prices have decreased relatively. For example, land with red books in Quang Minh Town (Me Linh District) a year ago was the cheapest at 25 - 30 million VND/ m2, but now it has dropped to about 20 - 25 million VND/ m2 . Or in Dan Phuong District, in Phung Town, there was a time when land prices reached 70 - 80 million VND/ m2 , but now it is only about 50 - 60 million VND/ m2 for good locations, locations far from the town center are about 40 - 45 million VND/ m2 . Large plots of 150 m2 or more are even cheaper.
In districts of Thach That, Quoc Oai, Ba Vi, Dong Anh, Gia Lam... or Van Giang district (Hung Yen), land prices are still decreasing.
Farm land, villas also "explode"
Not only land, but also farmland in the suburbs of Hanoi is in a "difficult situation". In the districts of Soc Son, Ba Vi, Thach That... recently, there has been a trend of selling homestays and farmland at a loss. As Thanh Nien has mentioned, farmland in many suburban districts has recently "deflated" by about 30-40% compared to the peak period and continues to decrease in price.
Villa prices in the suburbs have also decreased but there have not been many successful transactions.
Mr. Ngoc, a farm land broker in Soc Son District, admitted that he has not closed any deals in recent days. The market is already difficult, and with the recent landslide in Soc Son District and unfavorable information about farm land and homestays here, it has almost stopped. Land is also difficult to sell, prices are low, and transactions are also gloomy.
In the villa and townhouse segment in suburban projects, the situation is not much better. Mr. Pham Quang Nhu, who sells villas at The Phoenix project (Dan Phuong district, Hanoi) said that in the 5th lunar month, he was still able to close a villa in this project, but from the 6th lunar month onwards, there have been no buyers.
Land prices in The Phoenix Garden urban area in Dan Phuong district have decreased, but construction costs in some urban areas have increased, making investors less interested.
According to the report of the Ministry of Construction, the real estate sector in the second quarter of 2023 still grew slowly compared to the same period in 2022. The selling price of the real estate segment of villas and project land in many localities in the second quarter of 2023 continued to decrease by about 2-5% compared to the previous quarter, and may continue to be adjusted to appropriate values.
According to statistics from the Ministry of Construction, some areas with significantly reduced transaction prices in Hanoi include suburban districts such as Ha Dong District, Me Linh District, Hoai Duc District, etc.
Mr. Nguyen Van Dinh, Chairman of the Vietnam Real Estate Brokers Association, said that the phenomenon of suburban land prices decreasing is due to the general downward trend of the market. However, in the long term, this area still exists, investors should consider it suitable for buying.
"Some people tend to wait until the infrastructure is completed before investing, but if the road is completed and the districts become districts, real estate prices, especially land, will tend to increase, making it difficult to invest. Or like some land and real estate projects following the infrastructure of Ring Road 3.5 and Ring Road 4 in Me Linh District, Dan Phuong District, Van Giang District (Hung Yen)... if we wait until the project is strongly implemented, the price will increase," said Mr. Dinh.
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